Guidelines for Launching a Successful Business

Group 2 has effectively communicated with everyone, resulting in some fantastic suggestions and comments. We ultimately agreed that our chosen topic would be "What are the stages to starting up a successful business in the modern world of work." We chose it since the team has a great deal of expertise creating businesses and has a wide range of interests. We will be able to collaborate more passionately because we all have a personal stake in the subject, and there are those who are interested in launching their own businesses in the future. We have decided to use the group Canvas and group texts to better collaborate on this project. We have exchanged numbers, and we have been in contact every day. We have decided to check Canvas regularly and to have group discussion every other day through our group messages. Our time line is as follows:

July 14th: Start Project

July 16nd: Group Text: Exchange ideas.

July 17th: Group Text: Decide on a topic and assign jobs. (Milestone)

July 18th: Group Text/Canvas: Submit Part 1 of assignment. (Milestone)

July 20th: Group Text: Begin individual assignments for rough draft submission.

July 21st: Group Text/Canvas: Submit work that is completed to be viewed by the group.

July 22nd: Group Text/Canvas: All rough drafts should be sent to be verified by the entire team.

July 23rd: Group Text/Canvas: Submit Part 2 separately rough drafts. (Milestone)

July 24th: Group Text/Canvas: Begin to put rough drafts together.

July 26th: Group Text: Discuss any changes that may need to be adjusted.

July 28th: Group Text/Canvas: Final should be ready for the group at this point.

Jul 30th: Group Text/Canvas: Team Submission of Group 2 Project.

Team Jobs

Name 1: Team Leader and idea-generator.

Sections of responsibility include Select technology, branding, and advertising.

Required Elements: Body, letter/memo, and table of contents.

Name 2: Summarizer and facilitator.

Sections of responsibility include: Legal business structure, registering and partners.

Required Elements: Body, abstract and conclusion.

Name 3: Evaluator and Mediator.

Sections of responsibility include Business plan, finances, and growth of the business.

Required Elements: Body and introduction.

Name 4: Recorder and encourager.

Sections of responsibility include: Building a team and purchasing insurance.

Required Elements: Body, reference page and a list of figures/tables.

















Memo

To:

From:

Date:

Group Canvas

The group Canvas had four members who equally participated to ensure all the work was completed in time. The input from the team was crucial in completing the task. Part of the schedule of individual work was provided above and also indicated the reason for the topic. The project has helped us acquire skills that would be essential to those of us who wish to start an individual business. Team work skills are vital in the practice of business, and the studying through group work gives everyone an opportunity to learn about the role of active participation.











Table of Contents

Module 7- Group 2 Assignment: Team Project Part 1 2

Timeline 2

Team Jobs 3

Memo 4

Abstract 6

Executive summary. 7

Introduction 8

Business plan 8

Business description 9

Market analysis 9

Growth of business 11

SWOT Analysis 12

Strength 12

Weakness 13

Opportunities 14

Threats 14

Legal business structure of the business 15

Building a team 15

Purchasing insurance 16

Conclusion 17

References 18





List of Tables

Table 1: The expected sales in the first year of business (Buxel, Esenduran, & Griffin, 2015) 9



List of Figures

Figure 1: Profit analysis (Buxel, Esenduran, & Griffin, 2015) 10





Abstract

A sole proprietorship is a small business established by the person, and the owner has absolute control of the trade. The procedure for formation is easy, and the initial capital required is minimal compared to the other forms of trade. After registration, the proprietor has to come up with strategies that aid in growth and expansion. The first step is to develop a business plan that highlights the details and flow of operations. It also includes the mission, vision statements, and objectives. Consideration is given to the legal requirements to determine whether the procedures are in line with the applicable laws and legislations. In analyzing the markets, the strengths and potentials of the trade should be used to overcome the barriers. Specialization allows one to tap large market segments that will aid in income generation and hence facilitate the growth of the enterprise. Those involved in the incorporation of business ventures should ensure they have followed all the necessary steps to avoid penalties for example through failure to comply with legal requirements.

Key words: Sole proprietorship, business plan, vision, mission, strength, threats.



















Executive Summary



There are many forms of business activities that are available for individuals who want to venture into entrepreneurship. The smallest and simplest form of trade is the sole proprietorship since the legal requirements are minimal, and the initial startup cost is low. To succeed in the field, one has to research to identify areas that are untapped and where if it can maximize resources it can generate a return on the investment. The firm will then seek people who will be responsible for maintaining the routine activities of the enterprise. People are an essential asset in the organization and programs such as training will improve their skills and increase their productivity. Provision of insurance cover is also crucial for the employees in the case of accidents and the business due to uncertainties such as fire. Once the firm has been registered, it should ensure that all the activities comply with the legal requirements.























Steps to Starting up a Successful Business in the New World of Work

Introduction

The state laws contain the requirements for starting up a company, a sole proprietorship, or partnership. The initial step is registration of the business name. It facilitates the procedures for revenue generation to the state. The legal formalities are few, and the startup cost is minimal. In Texas, the fee for registration is ten dollars, and the amount varies depending on the state. According to Casson (2010), the trade is affected by factors such as competition, economic fluctuations and insufficient resources for expansion and growth. The barriers could be overcome through establishing a business plan that is detailed and reflects the company mission and objectives.

Business Plan

Kadzuri African Brand is a sole proprietorship that deals with the supply of African brands, for instance, foot wear, cloth, and jewelry. It is an online business with one warehouse in the state of Texas. The sole proprietor has conducted research and identified a gap in the market because the clients are willing to buy and sell our products in the United States. Some of the strategies that will be adopted include a strong financial control that will aid in the growth of the enterprise. The financial measure will form a factor that will enable it to achieve the vision of creating employment (Serafimova & Jakovlev, 2015). The objective of Kadzuri is to use the E-market model as a successful model for future ventures. The mission is to build a business that is rewarding and fulfilling.

Business Description

The name of the business will be Kadzuri African brand. The trade will involve shipping goods from Africa, in particular, Kenya and sell them in the United States. There is a demand for the products, but the market is still untapped because the majority of people do not have resources to start the business. According to Scarborough, (2014), there is a reluctance because of the complexity of international laws and taxes that are involved in shipping the goods. The import taxes, for instance, can raise the final cost of the product thus making the owner of the business to enjoy minimum profits (Scarborough, 2014). Importing the goods on a large scale will earn huge discounts that will generate substantial revenues suitable for expansion and growth of the enterprise.

Market Analysis

Kadzuri African brand has identified three market segments. The first one is the small business owners who are involved in the sale of online products and would like to have a variety of brands. The second segment is college students, and the last one is individual who will purchase the products online for personal use. With an initial cost start-up of $ 40,000 from family and friend donations, the business expects to generate profits in the first year of operation. The firm has conducted a one-year analysis of the total sales it expects from the items.

Table 1: The expected sales in the first year of business (Buxel, Esenduran & Griffin, 2015)



Market Analysis Year one









Item







Segment

Jewelry

Foot wear

Clothing

Bags

Kitenges

Small owners

40,000.00

30,000.00

40,000.00

20,000.00

10,000.00

College students

60,000.00

45,000.00

80,000.00

30,000.00

20,000.00

Individual Buyers

10,000.00

15,000.00

16,000.00

15,000.00

5,000.00

Total

110,000.00

90,000.00

136,000.00

65,000.00

35,000.00



During the first year, the total number of jewelry sold from the three segments will be 110,000. The clothing will be experiencing the highest total sales. According to Buxel, Esenduran, and Griffin (2015), the sales pattern is crucial when determining the needs of the people. It helps the individual owner determine the right items to purchase through an analysis of the sales. The college students buy more compared to the small and personal buyers. For the idea of a sole proprietorship, an initial startup cost of 40,000 dollars is required and the business expects to generate profits in the first year of operation.

Growth of Business

Considering a standard profit to the activity on all items at three dollars per item sold, the benefits will increase with the annual sales, and it will aid in the expansion and the growth of the business. The items are unique, considering that they are made through creativity that is derived from culture. The market is not likely to be affected by factors such as a shift in demand as a result of a change in technology that often depreciate the value of products.





Figure 1: Profit analysis (Buxel, Esenduran, & Griffin, 2015)

In the above graph, the profits derived per item from each segment are indicated. In the small owners, for instance, the highest gain derived from the group is 100,000 through the sale of jewelry. The total profit of Jewelry from the segments is 330,000. The benefit analysis assists the owner when carrying out performance and efficiency ratios that will help the manager determine the areas that need improvement.

All the expenses will be deducted from the gross profit to determine the net profit. The expenditures incurred by the trade will include the warehouse cost, the shipping cost, insurance, labor and local tax. Other than capital and profits, other external items may affect the growth of the business. To understand the factors, the firm will conduct a SWOT analysis to identify the areas it will have the maximum strengths to use them to overcome the weakness.

SWOT Analysis

Strength

Technology. The technology and infrastructure play a crucial role in the growth of the business. Kadzuri African brand has an information technology consultant who will be responsible for maintaining the website. The presence of good network systems will aid in communication and give feedback to the customers. Timely and reliable communication will increase trust and therefore maintain customer loyalty (Entrepreneurship in Family Firms, Business Families, and Family Business Groups, 2015). The existing clients also create referrals increasing the sales and profit margins.

The enterprise intends to use the internet for communication purposes. The websites such as Facebook, Twitter, and Pinterest allows an individual to share their products and pictures on a global scale without any cost (Buxel et al., 2015). Since the business is specifically focusing on online sales, there will be minimal disruptions and activities compared to those who operate retail stores and online sales (Casson, 2010). Through the use of technology, the business will, therefore, concentrate on functions that will make it unique hence standing out from other competitors.

Good marketing system. The proprietor of the business has a marketing background and is aware of the strategies that the firm needs to attract new customers and retain the existing clients.

Advertising. There are many modes of advertising that are available the use of billboards the media and magazine articles. The cost of maintaining advertisements is high, and since the business is small and wants to minimize cost, it will have one billboard adjacent to the ware house. The items to be included in the advertisement include the name of the business the website address a brief description of the products and the current items of supply. Other forms of advertising will include the use of local newspapers the radio and television commercials. Detailed information about all the activities will be available on the trade website.

Branding. It is the unique way of identifying the firm that sets it apart from the competitors. As part of the branding strategy, the enterprise intends to form a unique customer service style that will create an environment of satisfaction. The number of clients determines the growth should be treated fairly to encourage them to buy your commodities. In most instances, people often remember how they have been treated a factor that is crucial in attracting new buyers.

Weakness

Capital intensive. Starting a business often requires a lot of capital. The procedures and the modes of advertising all require resources. In the initial stages, the company may operate for days without making adequate sales as the people are not aware of the existence. As stated by Pedersen, (2013), it will require capital to maintain the operations before the sale peak, and if it takes a lot of time, it may drain the financial resources of an individual before making profits Consideration should be given to the above factors to avoid failure at the start.

Insufficient resources. The startup capital is contributed by the owner, family and friend donations. The resources are limited compared to other forms of associations such as companies and partnership. The fewer funds may hinder the progress and growth of the enterprise.

Opportunities

Large untapped markets. The fashion and clothing industry is still untapped. Many people are embracing modern concepts, and they have forgotten the idea that the tastes and preference of individuals are different. Others prefer trendy outfits while others like the art of simplicity with a little element of culture. There are few suppliers of the products and the business, therefore, intends to expand by having the warehouse located across states in the United States. It is also considering distributing the items to other continents such as Europe where the markets are still untapped.

Threats

Competition. Rivalry among firms affects the business industry. Big competitors may often show up, and because of the availability of resources, they are likely to penetrate the market fast and tap large segments compared to the small enterprises. The business will minimize the threat by offering excellent customer service programs that will ensure the customers remain loyal to their products (Casson, 2010). Continuous research and development will also be carried out, and information will be shared to the locals who make the products to make specifications according to the needs of the consumer.

Inflation. The global economy is affected by factors such as inflation that cause an increase in the price of the goods and services. A rise in the raw materials’ prices that are needed to make the jewelry, for instance, may make the final cost of the product to increase slightly higher than the usual prices. An increase in a price of the goods may decrease the demand for the products (Pedersen, 2013). A Decrease in the sales will affect the profitability of the business a factor that will slow down the growth process.

Legal Business Structure of the Business

The form of business structure is a sole proprietorship, and the location of the business will be in Texas. The procedure for setting the type of business in the state of Texas is simple. The next procedure requires one to file and register the business with the county clerk. The registration fee is ten dollars but may often vary depending on the circumstances. Obtaining an operating license is crucial according to the laws of the state (Buxel, Esenduran, & Griffin, 2015). Individuals who are employed are required to provide an employer identification number when doing a registration of the business and for those who are not employed have an obligation to have a social security that will aid the county in the collection of taxes (Fayolle, 2015).

Building a Team

The business requires a team that is diversified and those that have relevant skills that will initiate strategies that will give the company a competitive advantage. The business will hire a human resource professional who will be responsible for seeking and selecting the ideal candidates according to the needs of the firm. The human resource is required to come up with strategies that will motivate the employees and create a considerable working environment for the business. Training for instance on customer and after sales service is crucial as the routine transactions involve with dealing with people (Buxel, Esenduran & Griffin, 2015). All the employees will have to go through an orientation program that will ensure they know the essential elements of the operations so that when confronted with the questions from the customers they can give elaborate answers.

Purchasing Insurance

An insurance cover is crucial for any business. There are different types of insurance available. The business will have a property insurance that will safeguard the stock in the warehouse against theft and other uncertainties such as the fire that may destroy the property. The other form of insurance will be the worker's compensation. Employees are the most valuable asset in the organization as they aid in the generation of revenue. It is essential to protect their interest as it motivates them and makes them feel appreciated a factor that increases their productivity and overall profitability for the business. The worker compensation will include the medical covers of the employees avoiding the extra cost that may be incurred by the business in the case of accidents that would often require the employer to offer compensation. Life insurance is also crucial for the firm as it is a sole proprietorship. In the case of the death, the dependents of the business will have revenue that will support their families in the form of compensation offered by the life assurance (Buxel et al., 2015). It eliminates worries from people and therefore encourages them to be productive in the work environment.

Conclusion

There are many types of business activities, but the procedures and legal requirements that govern each are different. I would recommend a sole proprietorship because the requirements are few compared to company and partnership. The initial step is registration, and the required fee varies across States. Having a name, the owner can build a business plan that highlights the type of trade, the scope of operation, the mission, vision, and objectives. An analysis of the market is essential to determine the areas where it has potential to maximize on them to overcome the weakness. The other factors include insurance, local policies, and legislations which are vital to ensure smooth flow of the activities of the business. The sole proprietor gives the owner exclusive right to enjoy the profits as compared to a partnership where they are shared equally according to the ratio of contribution. I would recommend this form of trade because of the benefits it has in comparison with the company and partnership.











References

Buxel, H., Esenduran, G., & Griffin, S. (2015). Strategic sustainability: Creating business value with life cycle analysis. Business Horizons, 58(1), 109-122. http://dx.doi.org/10.1016/j.bushor.2014.09.004

Casson, M. (2010). Entrepreneurship. Journal of Small Business Management, 53(4), 1290-1290. http://dx.doi.org/10.1111/jsbm.12218

Fayolle, A. (2015). Entrepreneurship in family firms, business families, and family business groups. Journal Of Small Business Management, 53(4), 1290-1290. http://dx.doi.org/10.1111/jsbm.12218

Pedersen, T. (2013). The offshoring challenge. London: Springer.

Scarborough, N. (2014). Effective small business management. New York: Pearson.

Serafimova, M., & Jakovlev, Z. (2015). Enterpreneurship, management, and communication. Saarbrücken: LAP LAMBERT Academic Publishing.



List of Tables

Tble 1: The expected sales in the first year of business (Buxel, Esenduran, & Griffin, 2015)



Market Analysis Year one









Item







Segment

Jewelry

Foot wear

Clothing

Bags

Kitenges

Small owners

40,000.00

30,000.00

40,000.00

20,000.00

10,000.00

College students

60,000.00

45,000.00

80,000.00

30,000.00

20,000.00

Individual Buyers

10,000.00

15,000.00

16,000.00

15,000.00

5,000.00

Total

110,000.00

90,000.00

136,000.00

65,000.00

35,000.00





List of Figures

Figure 1: Profit analysis (Buxel, Esenduran, & Griffin, 2015)